The Metal Bulletin Newsletter

Sign up here to receive our free weekly newsletter

Invalid EmailInvalid Email

Thank you for signing up

By signing up to this free newsletter you agree to receive occasional emails from us informing you about our products and services.You can opt out of these emails at any time. Terms and ConditionsPrivacy policy.

CCX signs letter of intent for $125m sale of Colombian coal project

Coal exploration company CCX, part of Brazil’s EBX Group, has signed a letter of intent to sell its entire project in Colombia to Turkey’s Yildirim Holding for $125 million.

The deal includes the sale of open-pit mines Cañaverales
and Papayal and the San Juan underground mine, as well as the
associated infrastructure logistics project comprising a
railway and a port, CCX said on Monday February 3.

Under the terms of a memorandum of understanding (MoU) signed
in October 2013, Yildirim was expected to pay around $450
million for the whole project. Due-diligence has been conducted
but no explanation was given for the large change in the value
of the deal.

The $125 million purchase price includes payment of $5 million
to CCX to guarantee exclusivity in the negotiations.

The transaction is expected to be closed by the second quarter
of this year, through the transfer of CCX mining rights to
Yildirim, the Brazilian company said.

Located in the La Guajira region of northern Colombia,
Cañaverales and Papayal have 27.3 million tonnes and
15.6 million tonnes of certified coal reserves, respectively.

Each has an estimated output capacity of 2.5 million tpy of
coal.

The San Juan underground mine, meanwhile, has proven reserves
of 671.8 million tonnes, of which 92% comprise high-quality
pulverised coal injection (PCI) material.

The company’s port concession for the development
of a deep-water private port in Dibulla, La Guajira, was
approved by the Colombian government in October.